The letters landed on dealers desk across America like a ton of bricks, 789 Chrysler dealers and 1100 General Motors dealers out of business, plus another 1000 GM dealers receiving probationary letters, telling them to shape up or they are next.
What has happened to our free enterprise system, the capitalism that brought so much prosperity to this country, this has now become my battle cry. Bankruptcy courts are forcing independent business men and women to loose millions with a stroke of a pen without a hearing or opportunity to plead there case, what has happened to due process. Why aren't auto dealers getting a day in court, like any other creditor, dealers are owed billions in rebates, warranty work, incentives, parts credits, not to mention that all dealers have a valid contract that states that the manufacturer will repurchase all of the dealers remaining inventory if the dealer loses his or her franchise due to termination and other matters.
Earth to our U.S. Government, you terminated the dealers franchise agreements and then a bankruptcy judge terminated all dealer agreements, auto dealers deserve a hearing and no one is listening, they have valid claims in this bankruptcy proceedings as they are owed money just like everyone else standing in line in this meltdown.
However, what concerns me most is our U.S. Government said that they wanted to preserve jobs, yet they single handily in one letter, terminated upwards of over 100,000 (est.) people directly involved in the process of selling and servicing auto dealers on behalf of the manufacturers. These folks were not the problem, they were in essence part of the solution in retailing millions of vehicles over the years. No question that the domestic dealer body had to many dealers in many markets and same make brands cannibalized each others profit opportunity, but the manufacturers created the environment and men, women and families invested heavily in obtaining and financing these businesses. Real people in towns and cities across America are employed by these dealerships, communities rely on the tax base that these stores provide, softball teams and schools and other charitable organizations have come to rely on these enterprises for support over the years.
But what has baffled me the most is who is going to service the people who purchased many of the vehicles that these dealers sold? Although not announced, a service network of some major chain has to fill the void, you can't leave auto owners high and dry if a vehicle breaks down and the nearest dealer is 30 - 50 miles away in some cases, why isn't a comprehensive plan in place to answer the fears that some car owners have, announce the service centers who will provide the ongoing warranty work at the minimum.
An ongoing debate between dealers and domestic auto makers has been going on for years and implementing a plan to reduce dealers certainly cost money, but these dealers have served the manufacturer and there customer base well, most are profitable even if marginally in the current market. Many have sold vehicles exclusively with one make for generations and are stewards in there communities, attrition will take care of the weak and advancing market conditions will take care of the remainder.
Auto makers have many bigger issues to address, getting their own house in order should be at the top of that list, not putting independent businessmen and women and there employees out of business shouldn't be at the top of that list.
Enjoy Today!
That Car Guy
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